Brighter Landlording

Market update: New rental laws triggered by COVID-19 passed

by Justin Watt, CEO 23 April 2020

New laws to protect tenants struggling to pay rent were passed last night in State Parliament.

In an article this morning on the RTA answered questions about COVID-19 rental disputes. Here are the responses sent by a State Government spokesperson.

  1. What is the legal status of the ban on evictions? Do property owners retain their legal right to evict a tenant who is refusing to pay rent?

Property owners may still end tenancies including where the tenant has seriously breached a tenancy agreement, including malicious damage to the property or anti-social behaviour.

  1. What will happen if a landlord tries to evict a tenant over refusal or failure to pay rent?

If the tenant has proved they are impacted by COVID-19 the property owner would not be permitted to issue a notice to leave for rent arrears.

  1. Landlords can ask for evidence of job loss or Centrelink payments but cannot ask for any other financial information. Is it fair that tenants who may have adequate money in the bank could withhold rent, and the property owner has no way of ascertaining this? Failure to pay rent is causing great financial hardship for some property owners.

Property owners and tenants are asked to communicate openly and honestly to come to mutually agreed outcomes. If tenants and property owners are having difficulty reaching agreement, free mandatory conciliation with the Residential Tenancies Authority will be required where both parties must provide detailed financial information.

  1. You say that landlords and tenants should negotiate. What are the guidelines for this? Is a week a fair amount of time for a negotiation? What if either party refuses to negotiate or ignores communication and “fobs off’’ the other party? At what point should the matter go to the RTA for conciliation?

Guidelines are being developed in consultation with stakeholders which will support the legislative changes which will cover off on for example, provision of supporting documentation.

  1. Are RTA conciliation decisions legally binding?

Conciliation will look at individual circumstances of both tenants and property owners and will be enforceable.

  1. What happens if a tenant has failed to pay rent and refused to negotiate changes to the lease or to offer part-payment?

Under the new legislation, mandatory conciliation will be required through the RTA. If an agreement is unable to be reached with the RTA owners will have to go to QCAT.

  1. What protections do property owners have to prevent tenants using COVID-19 as an excuse to stop paying all rent? Should Centrelink recipients be required to pay some rent?

If the tenant has demonstrated hardship as a result of COVID-19, a new agreement should be arranged for a new reduced rent, and if the difference in rent will be re-paid. Usual tenancy rules still apply for anyone who is unaffected by COVID-19 income loss.

  1. Will the RTA rule that tenants should pay no more than 30 per cent of their income as rent? Eg a household with two people receiving $1500 per week from Centrelink would pay no more than $500 per week. Will this be legally binding?

Conciliation will look at individual circumstances of both tenants and property owners and will be enforceable.

  1. Will tenants be required to backpay rent that has been unpaid up until the point of a negotiated change to the lease agreement? How can landlords ensure they are back paid rent?

Usual tenancy laws apply around non-payment of rent, unless the tenant has been impacted by COVID-19. It’s up to owners and tenants to agree whether back pay of rent is payable, and if it can’t and agreement will be conciliated.

  1. If banks refuse to provide mortgage relief to a landlord who is then forced to sell the property due to a tenant’s failure to pay rent, can the tenant be evicted?

An owner would be able to end a tenancy if they are selling the property. The Palaszczuk Government has announced rental grants for those at risk of homelessness.

If you’re a landlord or tenant and have questions about your current real estate situation, please get in touch with us today.

Still have unanswered questions? Check out the COVID 19 Q&A with the REIQ; questions on new tenancy rules.